Many borrowers are struggling to afford their student loan payments right now, not because they’re “irresponsible,” but because the world those payments were designed for no longer exists. Since September 2023, student loan payments resumed after 3 ½ years of much-needed pandemic-era relief, while simultaneously the cost of living has risen sharply. Wages haven’t kept pace with inflation for many households, and life changes like job transitions, caregiving responsibilities, or variable income have made once-manageable payments feel overwhelming.
If you’re feeling the weight of this mismatch, please know you aren't alone, and you aren't without options. Here are five strategies to help you find some breathing room.
Immediate Income Recertification
Federal borrowers who are making payments under an income driven repayment plan (IDR) tend to mistakenly think that they can only update their income once a year during their recertification anniversary. If you’ve lost your job, are on maternity/paternity leave, or have taken a pay cut–you have the right to ask for an immediate payment recalculation.
Reporting a drop in income informs your loan servicer that your financial reality has changed. This can often drop payments significantly–sometimes as low as $0/month– until your next annual recertification. Best of all, even a "token" payment or a $0 payment under these plans still counts as progress toward loan forgiveness. To recertify your income:
- Visit studentaid.gov/idr
- Select “Log In to Start” next to “Recertify or Change Your Income-Driven Repayment Plan” under “Returning IDR Borrowers”
- Complete the online application, and be sure to select the first option “Recalculate My Monthly Payment.”
The application can take anywhere from 30-60 days to process. In the interim, your loan servicer should place the loans in an administrative forbearance. Each month in administrative forbearance (up to two months) should also count as an “eligible payment” towards your forgiveness timeline.
Strategic Forbearance
If you’re facing a temporary crisis rather than a long-term income drop, federal loans offer two main “pause buttons.” These are tools to protect your credit score when you truly cannot afford to make payments:
- General forbearance: offers a temporary payment pause (up to 9-12 months) upon discretionary approval by your loan servicer. While payments are not due during this period, interest continues to accrue.
- Economic hardship deferment: another type of payment pause for borrowers in certain situations that are affecting their ability to make payments like undergoing cancer treatments, unemployment, active military service, and natural disasters. Subsidized student loans in deferment are not subject to interest accrual.
While these options offer immediate relief, forbearances and deferments should be used strategically and sparingly as federal borrowers are given a limited allocation of these provisions. If a borrower is experiencing a significant drop in income, they might be better off simply staying on an IDR plan and recertifying their income for a low to $0/month payment that counts towards forgiveness vs. a forbearance that stalls loan forgiveness.
Loan Consolidation
If you’re a federal borrower, consolidating your loans can open doors to lower monthly payments by changing the structure of the debt.
- If a borrower is working towards paying their loans off on a standard plan, loan consolidation can create access to longer term standard plans (up to 30 years depending on the balance).
Stretching out the payments over a longer period, can reduce the monthly payments substantially.
Keep in mind, the tradeoff of doing this is more time in repayment, which results in increased total interest paid over time. However, if you get back to a place where you feel comfortable making larger payments, borrowers can always make more than the minimum payment on a standard plan to reduce the total interest paid.
- Consolidation can also help certain borrowers qualify for more favorable income driven repayment plans. Parent PLUS borrowers, in particular, can qualify for IDR plans that reduce their payments (like the new Repayment Assistance Plan) by consolidating their loans before July 1, 2026. Parent PLUS borrowers who consolidate after this date, will be disqualified from IDR plans under the new One Big Beautiful Bill Act. So, time is of the essence for these borrowers.
- The implications of loan consolidation should be strongly considered. Current federal student loan regulations are opaque about what happens to prior payment counts when a borrower consolidates. If a borrower has a long payment history they want to preserve for loan forgiveness, they need to weigh the pros and cons of consolidation very carefully. To consolidate your loans, visit studentaid.gov/consolidation and complete the online application.
Switch to the New Repayment Assistance Plan (RAP)
With the pending SAVE plan phaseout, the Repayment Assistance Plan (RAP)—enacted in 2025—is the new primary safety net for federal borrowers starting in July 2026. It is designed specifically for stability. RAP is an income driven repayment plan that caps monthly payments at 1-10% of a borrower’s Adjusted Gross Income (AGI). For example, if a borrower’s AGI is $10,000, their payment could be as low as $10/month. One of the best features of RAP is the interest subsidy: if your payment doesn’t cover the interest, the government waives the rest so your balance doesn't grow. This ensures that even in your hardest financial months, you aren't hustling backwards.
- This is the move that offers the most stability for borrowers who need a more long-term reduction in their monthly payments.
- Keep in mind the implications of switching to the RAP plan, which include a longer time in repayment for borrowers not pursuing Public Service Loan Forgiveness (PSLF). RAP is a 30-year plan, so while switching from a 25-year plan can reduce monthly payments, it will keep borrowers in repayment for five years longer.
Options for Private Borrowers
For borrowers who have student loans with private lenders, there are different options to consider since this loan type doesn't offer the same provisions as federal loans.
- Refinancing can be a smart option for private loans held at high and variable interest rates. If you can score a rate that’s at least 1% lower than your current rate and fixed, this is a move to strongly consider. Refinancing can create an immediate lower monthly payment, while substantially reducing interest costs over time.
- Certain private lenders may offer interest-only payment options or temporary rate reduction programs to prevent default. If you’re struggling with private loan payments, it’s always in your best interest to contact the lender before you miss your payment. Lenders are much more willing to help when borrowers are proactive.
The most important thing to remember is that inaction is the only truly wrong move when it comes to student loans. While the student loan system can feel like an immovable wall, it is actually designed with several "escape valves" to prevent borrowers from falling into default. By taking a few minutes to recertify your income or explore a new repayment plan, you aren’t just lowering a bill—you’re protecting your credit score and reclaiming your financial peace of mind.